Newly developed COVID-19 vaccine, which cost $25,000,000 to develop and $0.45 per dose to produce. The mid-year population of the United States was estimated to be 310,000,000 people. If every person in the country is vaccinated with a single dose, the company must charge $0. the nearest 1/10th of a cent, to just break even. per dose, to

Newly developed COVID-19 vaccine, which cost $25,000,000 to develop and $0.45 per dose to produce. The mid-year population of the United States was estimated to be 310,000,000 people. If every person in the country is vaccinated with a single dose, the company must charge $0. the nearest 1/10th of a cent, to just break even. per dose, to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A simple, direct space heating system is currently being used in a professional medical office complex. An upgraded “variable air-volume system” retrofit can be purchased and installed for $200,000 (investment cost). Its power savings in the future will be 500,000 kilo-Watt hours per year over its estimated life of 8 years. The cost of electricity is $0.10 per kilo-Watt hour. The firm’s MARR is 15% per year and the salvage value of the system in 8 years is $20,000. Use the "Intelligent Guess and Check Procedure" AND linear interpolation to calculate the IRR of this project. In your supporting work you should mention how you chose your different interest rates (for example, "I chose the MARR as my first guess" and "I tried a larger interest rate because my PW(current rate) > 0" or "I tried a smaller interest rate because my PW(current rate) < 0"). Also, clearly show the linear interpolation equation you used to solve for the IRR. Enter your answer as a percentage with two…
K Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $24 million per year. While many of these sales will be to new customers, Pisa Pizza estimates that 30% will come from customers who switch to the new, healthier pizza instead of buying the original version. a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? b. Suppose that 40% of the customers who will switch from Pisa Pizza's original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this case? a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? The…
A new marketing campaign will cost $1 million to produce in year 0. After the campaign is released, it is expected to generate $800,000 in profits in year 1, which will decrease by 50% each year until year 4. Profits from the campaign are shared with a partnering company, who will receive $50,000 each year for 4 years. If the MARR is 15%, what is the NPV of this campaign? (Round to nearest dollar)
You have an order from your customer in Milan, ITALY for 200 sets of Burtons GoreTex Gloves. Your terms are CIF. There are 10 sets to one box, and 20 boxes in the shipment. How much will the shipment cost (You must show YOUR work Each box weighs 5 kg. and measures 12x12x12 Total value of shipment = $ 7,500 Insurance per $100/value = $0.50 Airfreight: $5 per kilo from LAX to MIL • Customs duty = 15% • VAT = 20% Local delivery in Milan = $150 %3D
Haverhill Electronics (HE) has offered to supply the county government with one model of its security screening device at “cost plus 25 percent.” HE operates a manufacturing plant that can produce 22,000 devices per year, but it normally produces 20,000. The costs to produce 20,000 devices follow. Total Cost Cost per Device Production costs: Materials $ 4,600,000.00 $ 230.00 Labor 5,600,000.00 280.00 Supplies and other costs that will vary with production 1,680,000.00 84.00 Indirect cost that will not vary with production 1,680,000.00 84.00 Variable marketing costs 760,000.00 38.00 Administrative costs (will not vary with production) 19,280,000.00 964.00 Totals $ 33,600,000.00 $ 1,680.00 Based on these data, company management expects to receive $2,100.00 (= $1,680.00 × 125 percent) per device for those sold on this contract. After completing 200 devices, the company sent a bill (invoice) to the government for $33,600,000 (= 200 devices × $2,100.00 per…
It is estimated that there are 35 deaths for every 10 million people who use airplanes. A company that sells flight insurance provides $100,000 in case of death in a plane crash. A policy can be purchased for $1. Calculate the expected value and thereby determine how much the insurance company can make over the long run for each policy that it sells. The expected value is $ (Round to the nearest cent.) ITS
Domestic
A chain of take-away pizza stores is considering introducing a new line of gluten-free pizzas. Net revenue from the new line of pizzas is expected to total $500,000 per year, but 15% of this net revenue is forecast to consist of people switching from the regular pizzas to the gluten-free pizzas. How would you describe this situation in terms of the NPV analysis upon which the situation will be based. Question 1Answer a. There is a negative externality equal to $425,000 which should be included in the NPV analysis for the gluten-free pizza project. b. There is a positive externality equal to $425,000 which should be included in the NPV analysis for the gluten-free pizza project. c. There is a positive externality equal to $75,000 which should be included in the NPV analysis for the gluten-free pizza project. d. There is a negative externality equal to $75,000 which should be included in the NPV analysis for the gluten-free pizza project.
Ang Electronics Inc. has developed a new DVD-R. If the DVD-R is successful, the PV of the payoff (when the product is brought to market) is $37 million. If the DVD-R fails, the PV of the payoff is $24 million. If the product goes directly to market, there is a 34 percent chance of success. Alternatively, Ang can spend $9.0 million immediately and delay the launch by one year to test market the DVD-R. Test marketing would allow the firm to improve the product and increase the probability of success to 80 percent. The appropriate discount rate is 14 percent. a. Calculate the NPV of going directly to market now. (Round the answer to the nearest whole number. Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.) $ NPV b. Calculate the NPV of test marketing first. (Do not round intermediate calculations. Round the answer to 2 decimal places. Enter the answer in dollars, not millions of dollars. Omit $ sign in your response.) $ c. Should the firm conduct test…